Rank Group’s retail ops stumble as big-spenders spend elsewhere

UK-listed gambling operator Rank Group’s retail operations continue to struggle due to the company’s apparent inability to maintain relationships with some ‘high-spending customers.’

In a trading statement covering the 16 weeks to October 14, Rank said its like-for-like revenue was down nearly 5% from the same period last year. Retail operations got the blame for the decline, as their 6.1% revenue fall undid a 1.7% gain at Rank’s digital operations.

Mirroring patterns established in Rank’s most recent annual report, the company said its Grosvenor Casinos brand’s venues revenue was down 7.2% on a like-for-like basis, primarily due to reduced activity by some high-rolling customers. The Grosvenor brand’s digital operations were down 5.2% due to “more stringent customer due diligence” in place since September 2017.

It’s perhaps worth noting that Rank was fined £500k by the UK Gambling Commission last week for the company’s failure to adequately protect a “very high net value” land-based Grosvenor Casinos customer from his problem gambling tendencies, which “escalated rapidly” after he opened a Grosvenor digital account.